Call for joint Asean team to negotiate with US over tariffs

Bangkok Post

10-07-2025

Former finance minister Korn Chatikavanij wants the Thai government to urgently form a joint Asean negotiation team to engage with the US on reducing proposed tariffs, including a 36% rate on Thai goods set to take effect on Aug 1.
Mr Korn, chairman of wealth management platform Finnomena, described the 36% tariff as the worst-case scenario for trade negotiations, as it was US President Donald Trump's initial tariff rate for Thailand back in April.
The steep tariffs pose serious risks to Thailand's economic stability, financial markets and global competitiveness, he said.
Mr Korn also called for a restructuring of the 2026 national budget to compensate sectors affected by the tariffs. He emphasised the need for transparency, urging the government to clearly explain any industry liberalisation decisions made in exchange for tariff reductions so that affected businesses are fully informed and can prepare accordingly.
"If Thailand is forced to eliminate import tariffs on all US goods across all industries in exchange for tariff reductions, the government must also allocate budget support for the industries and workers affected by these concessions," said Mr Korn.
He cautioned that even if Thailand eliminates its import tariffs on US goods, as Vietnam did, there is no guarantee the US will offer equivalent tariff reductions.
Washington may view Vietnam as a more favourable production base with a more business-friendly environment, said Mr Korn.
"If Thailand does nothing, it risks losing foreign direct investment, a decline in exports, and worsening GDP, on top of ongoing political instability," he said.
Mr Korn suggested trade talks be conducted proactively, in collaboration with Asean nations, and raised through platforms such as the World Trade Organization to strengthen regional bargaining power, expand trade cooperation, and reach a sustainable resolution.
"It's nearly impossible for every party to walk away with a win. There will inevitably be trade-offs, so the public deserves full disclosure," he said.
Wasin Parithan, managing director of Definit Co, an investment advisory firm under Finnomena Group, said high US tariffs would weigh on affected countries in the short term by slowing economic growth and adding volatility to the stock market.
Chayanon Rakkanjanan, co-founder and chief executive of Finnomena, said he believes the Stock Exchange of Thailand (SET) index is unlikely to fall below 1,000 points, with resistance expected at 1,350 points.
Mr Chayanon said investors should consider holding 50% in equities, with 25% in US stocks and 25% in emerging markets excluding China. Roughly 40% should be allocated to bonds, of which 30% should be in global bonds and 10% in Thai fixed income.
The remaining allocation is for alternative assets, such as high-dividend Thai stocks like the SETHD index and gold, which remains a top performer.